By Othel V. Campos
BYD Auto Co. Ltd., one of largest electric vehicle manufacturers in the world, is scouting for the perfect location for its electric vehicle assembly facility in the Philippines, industry sources said Wednesday.
Sources said the Board of Investments was actively assisting BYD in its search for an economic zone to house the multi-billion-peso project.
The Board of Investments confirmed that representatives of a Chinese automotive company were in the Philippines in the fourth quarter of 2022 to apprise the government of their plans for an EV assembly project. The BOI, however, did not identify the company.
The BOI said it approved the registration of three other Chinese EV companies with local partners that plan to put up 1,000 charging stations, assemble 10,000 passenger cars for lease and 10,000 units for transport network vehicle services.
President Ferdinand Marcos Jr. issued Executive Order No. 12, providing for the removal of tariff on imported e-vehicles and the reduction in tariff for e-vehicle parts and components for a five-year period.
The BOI said e-vehicle assembly would qualify for fiscal incentives under the Tier II of the Strategic Investment Priority Plan. Tier II provides tax perks on investments in energy efficiency and establishment and operation of e-vehicle infrastructure like charging stations.
Filipino company Solar Transport and Automotive Resources Corp. is the authorized distributor of BYD Auto in the Philippines.
BYD, which stands for Build Your Dreams, is a global automotive brand present in more than 200 countries. The firm has the capability to match its EV technology from the design, battery raw material sourcing, battery manufacturing, AC motor production, charging technology, controllers, vehicle design, production and proprietary lithium ion technology to extend the life cycle of its EVs.
BYD e-vehicles are designed and built from the ground up by the BYD Design team which includes world renowned vehicle designers such as Wolfgang Egger, Michele Jauch-Paganetti and JuanMa Lopez.
Meanwhile, the BOI said more Swiss companies also expressed interest in investing in the Philippines during the investment mission to Switzerland at the sidelines of the Philippines-European Free Trade Association (and the 5th Philippines-Switzerland Joint Economic Committee meetings on Jan 9 to 13.
“With no less than the President as the country’s number one salesperson in pitching the Philippines, the country’s improved business climate continues to soar high as several multinational companies ramp up their interests in setting up businesses in the country along with existing firms expanding their investment portfolios,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said.
He said an initial $24.7 million worth of Swiss investment commitments with a potential job generation of 475 were generated in the business meetings arranged by the BOI and Philippine Trade Investment Center in Switzerland.
The Philippine delegation met with SATECO AG, a manufacturer of high-precision silicone keypads and silicone sensors, supplying big automotive players with a state-of-the-art manufacturing facility in the Philippines.
The company committed to infusing $9.7 million for a state-of-the-art, high-performance production facility at the TECO Industrial Park.